ERG sells CCGT plant in Italy, goes fully wind and solar

Italian energy group ERG SpA (BIT:ERG) has finalised the sale of the 480-MW Priolo Gargallo combined-cycle gas turbine (CCGT) cogeneration plant in Sicily, the last asset that stood on its way to becoming a wind and solar company only.

ERG said on Tuesday that it has sold all shares it held in the vehicle that owns the plant to Achernar Energy SpA, a unit of Switzerland-based investment holding Achernar Assets AG.

The group first announced the sale agreement in June 2023, saying that the deal considered an enterprise value of EUR 191.5 million (USD 202.8m), including working capital items and tax credits. The agreement also included earn-outs and other tax-related items, which would bring the total value to EUR 205.5 million, subject to adjustments at closing.

“With this operation we complete the path of transformation towards a pure Wind & Solar business model, the primary objective of our Business Plan and a fundamental step towards achieving the Net Zero objective,” ERG CEO Paolo Merli said in a statement on Tuesday.

The sale of the Priolo Gargallo CCGT plant did not go smoothly. ERG’s attempt to close the sale to Italian utility Enel SpA (BIT:ENEL) last year was blocked by the antitrust regulator on competition grounds.

(EUR 1.0 = USD 1.059)

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